Economics L1-5 Review Flashcard

Front

What are the resources of land, labor, capital, and entrepreneurship used to produce goods and services called?

Back

Factors of production

Front

What is the human effort directed toward producing goods and services known as?

Back

Labor

Front

What is the value of the next best alternative given up for the alternative that was chosen?

Back

Opportunity cost

Front

What is a traditional economy based on?

Back

Customs and beliefs

Front

Which economic system involves the government controlling the factors of production?

Back

Command economy

Front

In a market economy, who owns the factors of production?

Back

Private individuals

Front

Profit incentive

Back

The motivation to make money

Front

voluntary exchange

Back

A transaction where terms are agreed upon by buyer and seller

Front

What is a demand curve?

Back

A downward-sloping line showing quantities demanded.

Front

Elastic demand

Back

Demand that changes significantly with price changes.